Archive for the ‘Market Observations’ Category

The Southern California Real Estate market in 2014 started out slowly, but surprisingly took a huge surge in the late spring and early summer. Buyers were fighting over properties and raising prices in multiple offer situations, going over price as much as 20-30% of asking. Unfortunately, many sellers expected this to continue and were greatly disappointed in the last 30-45 days, when suddenly, prices seemed to take a dip. I personally took a listing in Sierra Madre where the neighbor’s home sold at a shockingly high price. Using that home as a comparable property, my seller and I thought we would get much more money than they eventually did for their home, even though their closing price was very reasonable. The sellers were happy, but we were all shocked that one neighbor’s home in the entire city seemed to get 20% more than nearly everyone else. I attribute this to perfect timing and excellent luck.

As the end of the year approaches, keep in mind that the 4th Quarter and the Holiday Season are still a good time to list and sell a property. The holiday festivities, such as smell of pine wreaths and baked cookies, add great appeal to a home. As a matter of fact, most buyers looking in November and December are quite serious about purchasing. There may be fewer buyers looking at the end of the year, but the dedication of these buyers is often a benefit to a seller.

There is a curious occurrence happening in the local real estate market – unusually high numbers of multiple offers on available properties. The question begs “why?” I asked my astute assistant that very question and he said the answer is that “due to continuing instability in global markets, investors are beginning to look for safe havens – real estate being a traditionally stable investment, it is a natural port for such investors.” The problem is in inventory. Unusually high amounts of offers and few houses to show!

This may make deals more difficult in the shorter term — sellers think it’s a seller’s market due to low inventory and buyers believe it’s a buyer’s market because prices could be at a very low point — but this could rebound. As the housing market recovers over time, inventory will increase to match the amount of buyers, potentially creating healthy growth in the housing market.

This all means: it’s a good time to try to invest now — regardless of the number of buyers out there — before prices go back up! Despite current market conditions it’s still very possible to find a dream home now at a steal. Even if you can’t find that perfect property, it’s even more likely to make nice investment by turning around property on the market rebound.